SPP signs pilot deal to purchase gas from Azerbaijan
Photo: Slovakia will buy gas from Azerbaijan (Getty Images)
Slovakia's state-owned gas purchasing company, SPP, has signed a short-term pilot contract to procure gas from Azerbaijan. The company is considering a longer-term deal due to the potential suspension of Russian gas supplies through Ukraine, Reuters reports.
SPP CEO Vojtech Ferencz stated, “Due to the high risk of stopping gas supplies via the eastern pipeline, we are taking measures to guarantee safe gas supplies to our customers, from large industrial customers to households, in any situation.”
SPP also announced that Slovakia has diversified its supply routes in case of a pipeline shutdown passing through Ukraine. This includes a pipeline from Germany running through Czechia.
The statement highlighted that the southern transit route via the TurkStream pipeline through the Black Sea would be significant if transit through Ukraine is halted. Part of the Russian or Azerbaijani gas could be transported through this route.
Additionally, the document noted that if supplies through Ukraine are stopped, further measures to secure supply would be taken, although they would come at a higher cost.
“If the company were to lose Russian deliveries and purchase the entire necessary volume from another source and physically transit it to Slovakia, it would cost it at least 140 million euros ($148.6 million) more,” SPP said.
The agreement between Moscow and Kyiv for Russian gas exports through Ukraine to Europe ends later this year, prompting SPP and other EU entities to seek alternative sources, including Azerbaijan. Kyiv has refused to negotiate with Moscow.
According to RBC-Ukraine, Ukraine has proposed a new gas supply scheme through its territory to the European Union, involving Slovakia and Azerbaijan.
